NVDA 8/9
Technical Analysis (TA) Overview:
Trend & Price Action:
Current Price: The price is trading around $106.19 with resistance nearby at $109.22.
Descending Triangle Formation: The price action indicates a descending triangle pattern, with lower highs forming, suggesting possible bearish sentiment.
Volume Profile: The right side of the chart shows a volume profile, highlighting areas where most trading has occurred. The price is near a high-volume node, meaning it might face resistance or support here.
Support and Resistance Levels:
Support Levels:
$97.13: This is the nearest strong support level. A break below this could lead to further declines.
$90.73: This is another crucial support level, just above the recent low of $90.69. If the price drops to this level, it could be a potential buying opportunity if the level holds.
Resistance Levels:
$106.19: The current level is acting as resistance, and the price is struggling to move above it.
$109.22: Another resistance level that could act as a barrier if the price manages to break above $106.19.
Moving Averages:
The chart doesn’t seem to display moving averages directly, but they can be important:
Short-Term (e.g., 50 EMA): If you plot this, it might be converging towards the price, offering additional resistance.
Long-Term (e.g., 200 EMA): This would typically be much higher given the recent downtrend, acting as a more distant resistance level.
Volume Analysis:
Volume Levels: Volume is crucial in confirming breakouts or breakdowns. The current volume is moderate, which could suggest a lack of strong conviction in either direction.
Volume Profile: The volume profile shows that a significant amount of trading has occurred between $100-$109. This could mean that the price may hover within this range until a clear breakout or breakdown occurs.
MACD (Moving Average Convergence Divergence):
Current MACD: The MACD below the price chart shows the MACD line potentially crossing above the signal line, which might suggest a short-term bullish momentum. However, if the price fails to break resistance, this could reverse.
Potential Scenarios & Strategies:
Bearish Scenario (Continuation Downwards):
Entry: If the price fails to break above $106.19 and drops below $97.13, this could be an opportunity to buy lower, potentially around $90.73 or slightly above it.
Target: A drop towards the $90.73-$97.13 range could offer a better entry. If you’re looking for a deeper discount, watch for a break below $90.73, though this might indicate a more severe downtrend.
Stop-Loss: If buying at these lower levels, consider placing a stop-loss below the $90.69 low, around $89.50, to protect against further declines.
Bullish Scenario (Reversal Above $106.19):
Entry: If the price breaks above $106.19 with strong volume, this might indicate the start of a rally. Consider entering around $107-$109.
Target: If the breakout is strong, targets could be set at $115-$121.62, with the latter being a significant resistance level as per the volume profile.
Stop-Loss: Set a stop-loss below the breakout level, around $104, to protect against a false breakout.
Neutral/Sideways Scenario:
Strategy: If the price remains between $97.13 and $109.22, it might be best to wait for a clear breakout or breakdown before making a move. Accumulating slowly on dips closer to $97.13 could be considered if you believe in NVDA's long-term prospects.
Conclusion:
Possible Pullback: There is potential for the price to drop back towards the $97.13-$90.73 range, offering a better entry point. However, this will depend on broader market conditions and whether NVDA can maintain its current support levels.
Strategy: Wait for a decisive move below $97.13 if you’re aiming to buy lower. If the price breaks above $106.19 and shows strength, you may want to consider entering at a higher price but with a clearer trend direction.
Market Sentiment & Fundamentals: Given NVDA’s strong position in the AI and semiconductor markets, any positive news or developments could lead to a sharp reversal, so keep an eye on market sentiment and broader tech sector movements.
Trend & Price Action:
Current Price: The price is trading around $106.19 with resistance nearby at $109.22.
Descending Triangle Formation: The price action indicates a descending triangle pattern, with lower highs forming, suggesting possible bearish sentiment.
Volume Profile: The right side of the chart shows a volume profile, highlighting areas where most trading has occurred. The price is near a high-volume node, meaning it might face resistance or support here.
Support and Resistance Levels:
Support Levels:
$97.13: This is the nearest strong support level. A break below this could lead to further declines.
$90.73: This is another crucial support level, just above the recent low of $90.69. If the price drops to this level, it could be a potential buying opportunity if the level holds.
Resistance Levels:
$106.19: The current level is acting as resistance, and the price is struggling to move above it.
$109.22: Another resistance level that could act as a barrier if the price manages to break above $106.19.
Moving Averages:
The chart doesn’t seem to display moving averages directly, but they can be important:
Short-Term (e.g., 50 EMA): If you plot this, it might be converging towards the price, offering additional resistance.
Long-Term (e.g., 200 EMA): This would typically be much higher given the recent downtrend, acting as a more distant resistance level.
Volume Analysis:
Volume Levels: Volume is crucial in confirming breakouts or breakdowns. The current volume is moderate, which could suggest a lack of strong conviction in either direction.
Volume Profile: The volume profile shows that a significant amount of trading has occurred between $100-$109. This could mean that the price may hover within this range until a clear breakout or breakdown occurs.
MACD (Moving Average Convergence Divergence):
Current MACD: The MACD below the price chart shows the MACD line potentially crossing above the signal line, which might suggest a short-term bullish momentum. However, if the price fails to break resistance, this could reverse.
Potential Scenarios & Strategies:
Bearish Scenario (Continuation Downwards):
Entry: If the price fails to break above $106.19 and drops below $97.13, this could be an opportunity to buy lower, potentially around $90.73 or slightly above it.
Target: A drop towards the $90.73-$97.13 range could offer a better entry. If you’re looking for a deeper discount, watch for a break below $90.73, though this might indicate a more severe downtrend.
Stop-Loss: If buying at these lower levels, consider placing a stop-loss below the $90.69 low, around $89.50, to protect against further declines.
Bullish Scenario (Reversal Above $106.19):
Entry: If the price breaks above $106.19 with strong volume, this might indicate the start of a rally. Consider entering around $107-$109.
Target: If the breakout is strong, targets could be set at $115-$121.62, with the latter being a significant resistance level as per the volume profile.
Stop-Loss: Set a stop-loss below the breakout level, around $104, to protect against a false breakout.
Neutral/Sideways Scenario:
Strategy: If the price remains between $97.13 and $109.22, it might be best to wait for a clear breakout or breakdown before making a move. Accumulating slowly on dips closer to $97.13 could be considered if you believe in NVDA's long-term prospects.
Conclusion:
Possible Pullback: There is potential for the price to drop back towards the $97.13-$90.73 range, offering a better entry point. However, this will depend on broader market conditions and whether NVDA can maintain its current support levels.
Strategy: Wait for a decisive move below $97.13 if you’re aiming to buy lower. If the price breaks above $106.19 and shows strength, you may want to consider entering at a higher price but with a clearer trend direction.
Market Sentiment & Fundamentals: Given NVDA’s strong position in the AI and semiconductor markets, any positive news or developments could lead to a sharp reversal, so keep an eye on market sentiment and broader tech sector movements.
Disclaimer
The information and publications are not meant to be, and do not constitute, financial, investment, trading, or other types of advice or recommendations supplied or endorsed by TradingView. Read more in the Terms of Use.
Disclaimer
The information and publications are not meant to be, and do not constitute, financial, investment, trading, or other types of advice or recommendations supplied or endorsed by TradingView. Read more in the Terms of Use.